Bloomberg: Appetite for Economic Risk-Taking Remains Low

Bloomberg reported that recent Federal Reserve Board comments support the view that the rate-increase cycle it intends to embark on will constitute the loosest tightening in its modern history.

Bloomberg noted that domestically, the appetite for economic risk-taking of U.S. companies remains low, particularly when it comes to investing in new production capacities and equipment.

Bloomberg said the Fed’s statement is consistent with the idea that the central bank, after more than six years of rock-bottom interest rates, will act with particular caution to raise them.

The following was excerpted from the FOMC statement: “When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2%. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.”